Tài liệu Putting social media to work docx

Putting social media to work
By Chris Barry, Rob Markey, Eric Almquist and Chris Brahm
Early adopters are gaining real
economic value from their invest-
ments in social media. Customers
who engage with companies
over social media are more loyal
and they spend up to 40 percent
more with those companies than
other customers.
Copyright © 2011 Bain & Company, Inc. All rights reserved.
Content: Global Editorial
Layout: Global Design
Chris Barry is a partner in Bain & Company’s Los Angeles offi ce. Rob Markey
and Eric Almquist are partners in Boston. Chris Brahm is a partner based
in San Francisco.
Putting social media to work
1
Early adopters are gain-
ing real economic value
from their investments
in social media. Custom-
ers who engage with
companies over social
media are more loyal
and they spend up to
40 percent more with
those companies than
other customers.
Five years ago, few general managers outside of
the tech industry had heard the term “social me-

dia.” As social networking services such as Face-
book and Twitter broke loose on the mainstream
business scene, the majority of companies stood
on the sidelines trying to make sense of it all.
Despite the proliferation of corporate Facebook
pages and Twitter accounts during the last couple
of years, most businesses still effectively remain on
the sidelines. The gap between the early adopters
and those waiting to take the plunge has actually
widened. While the average billion-dollar company
spends $750,000 a year on social media, according
to Bain & Company analysis, some early adopt-
ers such as Dell, Wal-Mart, Starbucks, JetBlue and
American Express invest signifi cantly more. In
some instances, the investment is tens of millions
of dollars. Who is right—the early adopters or
the companies still waiting it out?
Our research shows that several early adopters
have captured real economic value from their
investments. But the social media scene is so tur-
bulent and frothy that many others have poured
good money after bad in their attempts to engage
customers. The leaders typically employ the same
tried-and-true business principles—refi ned through
traditional marketing, service and operations—
applied in new ways. While they often experiment
and sometimes fail, they don’t allow themselves
to fall into the trap of thinking that somehow
“everything has changed” in this new world.
As part of a broader customer engagement strategy,

social media can be an effective and cost-effi cient
marketing, sales, service, insight and retention
tool. Our recent survey of more than 3,000 con-
sumers helped to identify what makes social media
effective. We found that customers who engage
with companies over social media spend 20 per-
cent to 40 percent more money with those com-
panies than other customers (see Figure 1). They
also demonstrate a deeper emotional commit-
ment to the companies, granting them an average
33 points higher Net Promoter
®
score (NPS
®
),
a common measure of customer loyalty (see
sidebar, “NPS 101”).
Embracing empowered consumers
More than 60 percent of Internet-connected indi-
viduals in the US now engage on social media
platforms every day. The speed and access to infor-
mation that they’ve come to appreciate has made
them more demanding customers. For example,
many now expect real-time customer service
recovery and quick responses to their online feed-
back. Hyper-connected individuals regularly
broadcast their opinions. And they rely on their
friends and social networks for news, reviews and
recommendations for products and businesses.
Social media leaders understand and appreciate

the magnitude of the shift in customer empower-
ment and the opportunities and risks that these
tools create. As a result, they approach their social
media efforts differently. While the average compa-
ny may maintain Facebook and Twitter accounts
and have other discrete programs run by their
marketing or customer service teams, in our expe-
rience, these efforts tend to be uncoordinated, with
different business units, brands or geographies
conducting their own social media experiments.
2
Putting social media to work
• Should we build or buy our own “commu-
nity” or partner with one of today’s leading
platforms? Or both? Where should we
place our bets?
• How should we organize and coordinate our
efforts? Across brands? Across business
units? Across geographies?
• How should we measure results? How
do we know whether we are creating real
business impact?
While no one can say for sure how social media
will evolve, and no one can know which platforms
will ultimately endure, the long-term winners
are likely to take a systematic approach based
on fi ve key principles:
1. Link social media efforts to concrete
business objectives
The roadmap for a successful business-to-

consumer social media strategy starts fi rst and
By contrast, the leading fi rms invest signifi cantly
more. They pursue integrated social media strat-
egies, with a more holistic assessment of the value
that social media can create across the businesses,
and with efforts directly tied to strategic business
objectives. As the early adopters continue to invest,
their peers take different approaches. Some feel
that they have social media at least partially sorted
out with their Facebook pages and Twitter accounts.
But others are beginning to ask more questions:
• What is the business case for investing fur-
ther in social media? Where and how much
should we invest?
• Fundamentally, how much is consumer be-
havior changing? What are the biggest op-
portunities and threats? How aggressively are
my competitors investing in these tools, and
are they capturing differential advantage?
• What are the best practices in deploying
social media strategies? What are the pit-
falls to avoid?
Figure 1: Engaged customers spend more
0
50
100
150
Promoter Passive Detractor
Annual average spend (indexed to Promoter=100)
+30%

+40%
+20%
Engaged customers spend 30% more
Engaged
Unengaged
Source: Social Media Consumer Survey (January 2011), n=3,019
Putting social media to work
3
• Improve the product or user experience
by embedding social capability; examples
are social gaming, social television and
social shopping
• Wow customers with real-time service re-
sponse, recovery and technical support, with
greater effi ciency than traditional channels
• Capture torrents of consumer insights, and
facilitate consumer-led innovation
• Build community and affinity through
engagement, earning greater loyalty, spend-
ing and referrals
Several companies have registered real bottom-
line results from their social media efforts (see
Figure 2). Most impressive, however, are the
companies that have stepped back and deployed
holistic social media strategies aimed at unlock-
ing value at each stage of the customer corridor.
Consider Dell and its broad use of social media.
Dell’s current social media efforts grew out of the
foremost with understanding the full value that
social media can create as one tool in a broader

customer engagement strategy.
Social media shouldn’t be viewed as a mere chan-
nel for marketing or public relations or as simply
an effective customer service tool. While many
companies started out using social media to get
the word out about products, the most successful
have signifi cantly expanded their efforts to engage
their customers at every step of what we call the
“customer corridor,” touch points that start when
a potential customer fi rst learns of a product and
extend through the moment they opt to make
repeat purchases.
Social media can create value at each step along
the way to:
• Generate awareness at a fraction of the
cost of traditional advertising media and
enable hyper-targeted marketing
• Prompt trials with daily and increasingly
real-time, location-based promotions
NPS 101
One effective way to measure the effect of a social media program on customer loyalty is
with the use of a Net Promoter system.
To start out, one should measure a Net Promoter score (NPS) by asking customers the question:
“How likely would you be to recommend [this company or product] to a friend or colleague?”
Respondents who give marks of nine or 10 are promoters, the company’s most devoted customers.
Those scoring their experience seven or eight are passives, and those scoring it from zero to
six are detractors. NPS is the percentage of promoters minus the percentage of detractors.
After ranking customers, companies create a closed-loop system to learn why customers are
promoters, passives or detractors, and to deliver the feedback directly to employees who can
act on that feedback. When appropriate, they follow up directly with customers.

Companies make it a priority to increase the number of their promoters and shrink the number
of their detractors, discovering and investing behind the actions that improve the company’s NPS
in ways that are fi nancially sound and that will result in profi table, sustainable, organic growth.
4
Putting social media to work
2. Focus and tailor your efforts to engage
your key customers
Winning companies have learned that, while an
effective social media strategy can reap big rewards,
it also isn’t something that happens easily. It is
obvious to many companies now that you can’t
just put up a Facebook page and start broadcast-
ing content. You can’t take for granted that fans
will just stick around and allow their walls to be
fi lled with marketing and promotions.
Bain & Company research shows that the average
Facebook user will “like” no more than seven
companies or brands. Facebook users must be
selective or they will soon fi nd their walls fl ush
with corporate messaging and promotions, leav-
ing little room for posts by friends and family. To
increase the odds of capturing valuable real es-
tate on a customer’s wall, it is critical to know
your target audience and understand which social
media platforms they frequent, as well as the
type of content and engagement they fi nd most
company’s customer-centric and direct selling
model, founder Michael Dell’s foresight of the
power of online social engagement, and some in-
famous prodding on technology blogs. Brought

to life as a way to respond to customer service
issues, Dell’s social media efforts expanded in
multiple directions, helping the company in-
crease revenues and retain loyal customers. To
boost sales, the company’s Dell Outlet site offers
fl ash promotions through Twitter. The computer
maker uses feedback generated on social media
to improve its products and customer service:
Direct2Dell facilitates active dialogue be-
tween customers and company leaders, while its
IdeaStorm.com enables crowd-sourced ideas and
gives customers the opportunity to collaborate
and prioritize product and service improvements.
Finally, the company relies on social media to
activate promoters and acquire new customers:
@Dell interacts with potential customers—and
also facilitates promoter interaction with poten-
tial customers. End-to-end, social media is a key
tool in Dell’s customer engagement strategy.
Figure 2: Companies using social media to serve the needs of customers can achieve real
returns at every touch point
Awareness
Purchase
Use
Service
Feedback
Retention
Sources: Industry publications and websites; Bain analysis
Ford achieved same level of brand recognition with a Fiesta social media
campaign at 10% of traditional TV ad cost

Wet Seal reports that social shoppers have a 2.5 times greater conversion rate
than the average customer
Nike+ product and social community credited with increasing Nike running shoe
market share from 48% to 61%
Intuit’s own QuickBook customers answer 70% of fellow customer service questions online
LEGO credits customer ideasourcing with its decision to launch more expensive
and customerinnovated sets, such as the 500piece Star Wars product
eBay community users spend 54% more than other customers
Putting social media to work
5
compelling. Only then can you optimize your
platform mix and tailor your content to reach
those customers.
Our research has identifi ed 10 segments of social
consumers (see Figure 3). Members of these
segments frequent different social media plat-
forms and prefer different types of content and
engagement models. For example, companies
such as Disney, Wal-Mart and Mattel, who target
“moms,” will fi nd they are disproportionately
“Social Butterfl ies” and “Social Gamers.” A key
demographic on Facebook, “moms” as a group
spend significant amounts of time playing
social games. Companies such as Nestlé have
found ways to embed their brands into the
games that moms play online. For example, the
company allows users to grow ingredients of its
Stouffer’s brand prepared meals within the
FarmVille game. It engages with key custom-
ers in the right platform, and with the content

those customers fi nd compelling. Alternatively,
companies looking to capture the online attention
of the “Young and Mobile” will reach them through
micro-blogs and location-based games, making
the most of the platforms that are popular with
this segment. As the social media ecosystem con-
tinues to evolve, it will likely further fragment,
making consumer segmentation—and tailored
social media approaches—even more impor-
tant for success.
In addition to tailoring efforts to key custom-
ers, companies need engagement plans that
explicitly target their promoters and detractors,
as well as key infl uencers. Promoters are a com-
pany’s natural fans, though our research shows
that a company’s Facebook fans and Twitter
followers are actually a mix of promoters, pas-
sives and detractors.
Most companies dread the vocal and infl uential
detractor. Social media offers these unhappy
customers a platform from which to quickly broad-
cast their negative commentary. Companies such
as JetBlue and Dell, who actively monitor social
Figure 3: Who’s online? Design the social strategy with target consumers in mind
Fact Finders Contributors Blog Readers Observers
Source: Social Media Consumer Survey (January 2011), n=3,019
Deal Hunters Young and Mobile Social Gamers Showgoers
Bain’s social media consumer segmentation
18% 12% 12% 11% 10%
10% 9% 8% 6% 4%

Social Butterflies
Professional Networkers
• Heavy users of
personal networks
• Skew to female users,
younger and working
• “Moms” represent a
large share
• Heavy users of
multimedia sites,
ratings and review
sites, branded
communities
• Skew to male
users, older
• Disproportionate
creators and posters
of content
• Heavy users of
locationbased games,
crowdsourcing sites,
branded communities,
social shopping
• Moderate social
media use and
disproportionate
presence on blog sites
• Skew to male
users, older
• Maintain passive

presence on social
networking sites
• Skew to female
users, older
• Heavy users of ratings
and review sites,
groupbuying sites,
branded communities
• Disproportionate
share of spending
occurs online
• Heavy users of
microblogs, social
networking and
locationbased games
• Skew to younger
demographics,
e.g., students
• Active on social
gaming and
engaged in location
based gaming
• Significant contingent
skews older
• Tend to be passive
consumers of
entertainment and
content generated
by others
• Heavy users

of professional
networking sites
and microblogs
• Skew to male
users, affluent

6
Putting social media to work
chatter, engage detractors on a real-time basis in
an effort to diffuse heated commentary. In the
best outcomes, they successfully convert those
detractors to promoters. Dell estimates that its
customer service teams can convert a detractor
to a promoter more than 30 percent of the time.
JetBlue’s real-time Twitter customer service recov-
ery force received much attention for its adept
handling of last December’s “Snowmageddon.”
JetBlue effectively converted stranded passengers
from detractors to promoters by quickly rebook-
ing them on new fl ights. And these successful
recovery efforts were witnessed by JetBlue’s 1.6
million Twitter followers. Stories of the exceptional
recovery reverberated broadly across the Web and
beyond, as traditional media outlets picked them
up. JetBlue estimates that its customer service
recovery over Twitter is more productive than
when delivered over alternative channels and that
it can handle fi ve customer-related tweets for every
one call handled through a call center. As the
company’s successes have grown, it has contin-

ued to invest further in its Twitter-enabled cus-
tomer service team.
Social media leaders also think just as carefully
about how they can effectively nurture and mo-
bilize “Influencers”—those hyper-connected
individuals who have disproportionate online
clout. Companies such as Microsoft, Dell, and
Procter & Gamble host events for Infl uencers,
provide special online recognition, allow them
to try and test products, and host online chats.
They invest in the Infl uencers to magnify the
impact of their engagement efforts.
3. Build a social media organization to
deliver results
Once a company has linked its approach to busi-
ness strategy and targeted its key customers, it
needs to put in place an organization to follow
through—an organization that’s designed to
enable coordination and share best practices.
Winning companies mobilize cross-functional
teams spanning marketing, sales, public relations,
corporate strategy, customer service, product
development, IT, HR and legal.
Making the business case for social media
Many companies struggle to calculate an ROI on their investment in social media. And without
confi dence in clear returns, have diffi culty securing the funds needed to scale their efforts. Compa-
nies that most successfully make the business case for social media use a two-pronged approach.
First, they set clear business objectives for using social media at each step across the customer
corridor. They run small, contained pilots, carefully tracking returns to demonstrate whether fur-
ther investment is warranted. For example, if the objective is to generate leads, the same metrics

and measures used to assess the effectiveness of other marketing vehicles can be deployed to
gauge the success of a social media pilot campaign. If the objective is to boost customer service,
the effectiveness can be measured by service resolutions, relative cost and productivity, call
avoidance and the ratios of detractors converted to promoters.
Second, companies further build the case by considering the broader value of social media.
They articulate the value of engaging their customers where they are increasingly spending time
and consider the real business value that authentic engagement can create. Again, customers
who engage with companies over social media are more loyal and they spend 20 percent to 40
percent more with those companies than other customers do. Social media platforms are becom-
ing increasingly important for companies to engage with, delight and retain their best customers.
Putting social media to work
7
Many companies today have social efforts siloed
across functions. Leaders align their organizations
to more effectively coordinate and communicate.
Why is this important? First, it allows the entire or-
ganization to learn from each customer touch point.
Second, it better enables the company to deliver a
consistent and seamless customer experience.
While the organization must ultimately be defi ned
by a company’s unique social media strategy,
we’ve seen three successful organizational models
deployed to coordinate social media efforts:
• Empowered units. Dell is a great example
of a company with an empowered unit struc-
ture. Within this type of organizational
model, the social media strategy is managed
by a cross-functional team that can be staffed
virtually or centrally—or a combination of the
two. The head of the social media organization

holds responsibility for integrating the vision,
coordinating strategic initiatives and defi ning
metrics and dashboards. Each function de-
ploys its own social initiatives but circles back
to the group with insights and best practices.
• Command and control. Starbucks’ social me-
dia strategy is deployed by a single, central
social media organization. Such a team may
exist within a function or as an independent
team under corporate. That approach allows
for strong centralized control of consistent
brand messages and customer experiences.
• Decentralized. Zappos and Best Buy both
deploy social media in a decentralized fashion.
In this model, a small central team coordi-
nates the efforts of numerous employees who
individually engage with customers via social
media. Many companies deploying such a
model report that empowering employees
increases morale and retention. With this
model, it is especially important to devise
and communicate clear social policies and
procedures in order to manage risk to the
business and brands.
Leaders also look for ways to capture the greatest
scale benefi t from their investments in organiza-
tion and tools. Social media organizations tend
to grow as companies prove they are achieving
benefi ts. While most companies build the social
media organization initially to engage their cus-

tomers, they often fi nd that they can also use
these same social teams and platforms to en-
gage their own employees and their partners.
4. Monitor and measure the results—then
close the loop
Creating the right dashboard to measure and
track results is critical. There are a few challenges
in measuring the return on investment (ROI) on
social media efforts, and many companies will
remain gun-shy about spending until they cap-
ture concrete evidence of ROI (See sidebar,
“Making the business case for social media”).
Leaders are quickly evolving their monitoring
and measurement approaches. They are investing
in the tools and methods to better integrate and
connect social conversations, Web analytics, cus-
tomer records and purchase data. The aim is to
both improve the effectiveness of their social cam-
paigns and to better capture the data needed on
leads and conversion to calculate fi nancial returns.
Generally, companies should think about mea-
suring performance and tracking results in
three key ways:
• Engagement metrics. Companies fi nd it valu-
able to track the percentage of customers
“engaged”—looking at such basic measures
as site traffi c, fans and followers. Additional
engagement metrics include buzz and share
of voice. While most companies rely on third-
party analytics fi rms to capture these metrics,

leaders such as Dell and Gatorade have in-
vested in their own social media listening
command centers. Within these centers, em-
ployees complement social media monitoring
software with a dashboard of key metrics such
8
Putting social media to work
as brand discussions, customer interactions
and media campaign performance. These
dashboards emphasize the role of listening as
an organizational priority, and better enable
companies to spot important trends quickly.
• Customer metrics. Social media leaders in-
vest in the tools necessary to track shifts in
loyalty and NPS. They also invest in the
manual “cleaning” of listening and analytic
tool output to capture shifts in sentiment.
Social analytics providers are still developing
their machine-based algorithms to better
capture sentiment trends, which are diffi cult
to obtain with natural language translation
(see sidebar: “A caution on sentiment an-
alytics”). We expect that these fi rms—along
with the broader set of social engagement,
social management and social intelligence
support tool providers—will continue to in-
vest to improve their tools. We also expect
further consolidation in this space as the
market continues to evolve and mature.
• Financial impact. Leaders aggressively cap-

ture personal identifi ers to link social media
profi les and associated behavior to customer
records databases. Contests and promotions
that require registration of email addresses
and Twitter “handles” help bridge social
identities. Once the connection is made,
companies can more easily track leads, con-
version and ROI on social campaigns.
In addition to measuring the success of so-
cial media efforts, those companies that truly
extract value from social media “close the
loop.” They take the torrents of consumer
insights captured via social engagement and
relay them back to the product and customer
service teams. It is this closed loop that allows
companies to strengthen the underlying
business value proposition. Ultimately, that
is how social media delivers long-term,
sustainable value.
5. Be flexible and adaptive. It’s still
early days
Social media is one area in which everybody is
learning in real time. Just as companies need to
continuously experiment to determine what works
for them and their customers, they also need to
negotiate an increasingly crowded playing fi eld,
with newcomers always joining the game. The
companies that succeed will be those that are
fl exible and adaptable. They’ll be able to quickly
try new approaches and just as quickly adjust—

or abandon them. They’ll listen to social consum-
ers and relay their fi ndings back to product and
service teams to strengthen the company’s un-
derlying value proposition.
These still are the early days and we expect the gap
between social media leaders and others to contin-
ue to grow. Consumer behavior will continue to
evolve. New applications and social platforms will
proliferate and enable even greater personaliza-
tion and real-time, location-based engagement.
Today’s social media winners won’t necessarily
be tomorrow’s.
But amid the continuous disruption of a rapidly
evolving game, companies that link social media
to business objectives, target and tailor their en-
gagement to key customers, build a coordinated
organization, track results and close the loop, and
stay fl exible will signifi cantly increase their odds
of capturing real value from social media.
Net Promoter
®
and NPS
®
are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
A caution on sentiment analytics
Companies considering hiring social media analytics fi rms should be advised that this science
is in its infancy, with serious limitations. Machine-based analytics tools can measure the volume
of posts, but they face signifi cant challenges in accurately capturing sentiment. Raw online data
may be full of misspellings and gibberish. Natural language is full of sarcasm and slang. As
such, time-intensive manual manipulation is still required to accurately assess consumer sentiment

and capture consumer pain points. Such limitations have prevented analytics companies from
living up to their potential. One strong signal that they fall short: while most industries achieve
an NPS of about 30 percent, the nascent social media analytics industry scores a -60 percent
NPS, according to Bain research.
While we expect this young industry to consolidate and improve with further investment in
tools, few customers of these companies today are promoters.
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